Voluntary Agreement

croboy

In theory-what would stop me from withdrawing loads of cash on my credit cards, paying chqs to a third party and then claiming that i cant pay my bills and do one of these voluntary agreements whereby i pay back 40p to the pound??? Is this classed as fraud as i know somebody who did this and it makes me mad!

sparkle84

Because credit card companies aren't idiots and it would be classed as fraud - I doubt you know anyone who has done this as you don't decide you will pay 40p in the £ your creditors and the IP decide how much you will pay often up to 95p in the £ and they take 100% of your suplus income plus and overtime and bouses. Is a legally binding agreement and you will be made bankrupt by the IP if it fails. Still mad??

croboy

They also did it on that 'beat the bailiffs' on bbc1 on monday! People run up £1000's of debts then just pay approx 40p to the pound-it seems unfair to me!

jason.lawrie

these people who do this are the lowest of the low - many of us are in debt for a large amount - we ended up there, we didnt go out on a mad spending spree and thought well *&^% it all. Many of us have famalies and struggle to get by each month but we do it to get debt free one day unlike the ones who want to blow it all for the sake of it the claim to be skint. Its far too easy - you could be on £50,000 a year and claim to be only on £20,000 a year, who knows... debt management companies wont ask for payslips. At least many of us know one day, may be long off we are striving for debt free and have a clear conscience we are doing everything possible

sparkle84

these people who do this are the lowest of the low - many of us are in debt for a large amount - we ended up there, we didnt go out on a mad spending spree and thought well *&^% it all. Many of us have famalies and struggle to get by each month but we do it to get debt free one day unlike the ones who want to blow it all for the sake of it the claim to be skint. Its far too easy - you could be on £50,000 a year and claim to be only on £20,000 a year, who knows... debt management companies wont ask for payslips. At least many of us know one day, may be long off we are striving for debt free and have a clear conscience we are doing everything possible

I would just like to clear up a few things up here an IVA is not a DMP it is a legal binding agreement to repay your creditors - they take all your suplus income for 5 years and in the 4th year you have to remortgage to release equity to give them. All of your financial affairs are rigorously checked. Again 40p in the £ is very low and unlikely to be accepted by the creditors who have to vote on the arrangement and even if it was all your creditors would be loosing out on is the huge amount of interest they charge - people who opt for an IVA are not avoiding debt they are trying to pay back debts as best they can. A DMP is an informal arrangement however both payplan and cccs ask to see payslips (original ones) the fee charge debt management companies are leeches and should be avoided. Beat the Baliffs is a stage managed pile of cr*p and bears no relation to real life whatsoever

croboy

Example of what im saying from payplan case-study. You obviously not as clever as you think! IVA are easy outs!


His debt of £50,000 had built up gradually over the last few years.
During this time he had taken out loans to consolidate and buy a car but he was finding it hard to make the full payments on his net income of £850 a month.
When he realised he was using his credit card to pay his other debts he contacted a debt management company he had seen advertised on TV. He agreed with them to pay £350 a month to include £62 in fees and the first month's payment going to the debt management company for their administration fee. He made the payments for a few months but soon realised that his debts were still increasing because interest and charges were still being added and it was going to take well over 15 years to pay them back as his creditors were only receiving £290 of his monthly payment.
Not happy with this situation he found our details on the internet. We could have helped Kevin to transfer his debt management plan to Payplan who would not have charged him fees thus reducing his debts at a quicker rate. However Kevin was keen to see a quicker solution and opted to try an IVA. He also considered bankruptcy but was concerned about the effect this could have on his parents.
Shaws put together proposals based on an offer of £310 a month that were accepted by his creditors a couple of months later. £18,600 to settle debts of £50,000.